5 Big-Name Bankruptcies of 2012

Photo (cc) by Christian Cable

The liquidation of the iconic Hostess Brands has been in and out of the news for months following the company’s filing for bankruptcy protection earlier this year.

But the manufacturer of the beloved Twinkie is hardly the only company to visit bankruptcy court in 2012…

Kodak

The 120-year-old Eastman Kodak Company, as well as its subsidiary Eastman Kodak International Capital Company Inc., filed a petition for bankruptcy protection on Jan. 19, seeking to reorganize under Chapter 11 of the U.S. Bankruptcy Code so the camera manufacturer could repay its debts over time.

The company’s refinancing plans were recently approved.

“A U.S. Bankruptcy Court judge on [Dec. 14] signed off on Kodak entering into an $830 million agreement to help keep it afloat.” But, the Democrat and Chronicle reported, “A number of conditions must be met before Kodak actually can borrow any of the money, including sale of its digital imaging patent portfolio.”

Kodak reportedly plans to sell the patents for $525 million to a group of buyers that includes Apple and Google.

American Suzuki

American Suzuki Motor Corporation filed for Chapter 11 bankruptcy protection on Nov. 5, announcing plans to “realign” its business. The U.S. arm of the Japanese car manufacturer said it will stop selling new cars, instead manufacturing parts exclusively and focusing on its motorcycle/ATV and marine divisions.

If you own a Suzuki, the company says it will continue to honor all warranties.

If you want a Suzuki, Consumer Reports says, “Rest assured, deep discounts will be offered. However, you must weigh the initial, upfront savings against the inevitably accelerated depreciation and potential long-term service challenges.”

Betsey Johnson

Betsey Johnson LLC, better known as simply “Betsey Johnson,” filed for Chapter 11 bankruptcy protection on April 26. The company, founded by the colorful 70-year-old designer Betsey Johnson, has closed its stores but its brand lives on under new ownership (shoe company Steve Madden).

The New York Times recently reported that Betsey Johnson will debut a lower-priced clothing line at department stores in January 2013.

Elsewhere in the fashion world, United Retail Group, the parent company of the plus-size clothing chain Avenue, filed for Chapter 11 protection on Feb. 1.

City of San Bernardino, Calif.

On Aug. 1, San Bernardino filed a petition for Chapter 9 bankruptcy protection, which allows municipalities to reorganize. According to the petition, the city estimated that it owed money to more than 10,000 creditors.

In a resolution adopted two weeks earlier, the mayor and city council declared a “fiscal emergency” and determined the city of 213,000 residents would run out of money within 60 days without bankruptcy protection, the petition states.

But San Bernardino was just the latest California city to request Chapter 9 protection in 2012. The Town of Mammoth Lakes (population 8,300) filed on July 3. A judge dismissed the case on Nov. 16, after the town reached a settlement with its biggest creditor.

The City of Stockton (population 296,000) filed on June 28. Its case, and that of San Bernardino, are still working their way through court.

Octomom

On April 30, Nadya “Octomom” Suleman filed a petition for personal bankruptcy protection under Chapter 7. A judge dismissed her claim two weeks later because the single mother of 14, famous for birthing octuplets via in-vitro fertilization in 2009, failed to file required documents.

Suleman lost her Orange County, Calif., home to foreclosure in June. She most recently made the news for her porn debut, “Octomom Home Alone,” which was nominated for four Adult Video Network Awards in November – and reportedly helped Suleman secure a new house.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
5 Cheap and Easy Ways to Make Your Car Smell Delightful
5 Cheap and Easy Ways to Make Your Car Smell Delightful

These tips will leave your ride smelling delightful for next to nothing. Some options are also chemical-free.

7 Gadgets Under $60 That Can Boost Your Health
7 Gadgets Under $60 That Can Boost Your Health

These Amazon finds can help ease foot aches, boost energy and even protect your heart.

6 Types of People Who Can’t Count on Social Security
6 Types of People Who Can’t Count on Social Security

If you fall into one of these groups, don’t assume that you will receive benefits.

3 Big Medicare Costs Just Got Bigger
3 Big Medicare Costs Just Got Bigger

Some Medicare premiums and deductibles for 2020 will take a bigger bite out of Social Security payments.

This Is the Best Used Car You Can Buy
This Is the Best Used Car You Can Buy

This car combines reliability, safety and long-lasting value.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
9 Things You’ll Never See at Costco Again
9 Things You’ll Never See at Costco Again

The warehouse store offers an enormous selection, but these products aren’t coming back.

11 Things Retirees Should Always Buy at Costco
11 Things Retirees Should Always Buy at Costco

This leader in bulk shopping is a great place to find discounts in the fixed-income years.

Over 50? The CDC Says You Need These 4 Vaccines
Over 50? The CDC Says You Need These 4 Vaccines

Fall is the time to schedule vaccines that can keep you healthy — and even save your life.

11 Household Items That Go Bad — or Become Dangerous
11 Household Items That Go Bad — or Become Dangerous

When you get the impulse to stockpile these everyday items, pay close attention to their expiration dates.

Why Cloth Masks May Increase Your Coronavirus Risk
Why Cloth Masks May Increase Your Coronavirus Risk

A new study finds that wearing a cloth mask can backfire if you don’t clean it properly.

8 Things You Can Get for Free at Pharmacies
8 Things You Can Get for Free at Pharmacies

In this age of higher-priced drugs and complex health care systems, a trip to the pharmacy can spark worry. Freebies sure do help.

The 15 Worst States for Retirees in 2020
The 15 Worst States for Retirees in 2020

Based on dozens of metrics tied to affordability, quality of life and health care, these are not ideal places to spend retirement.

7 Ways to Boost Your Credit Score Fast
7 Ways to Boost Your Credit Score Fast

Your financial security might soon depend upon the strength of your credit score.

These Are the 4 Best Medicare Advantage Plans for 2020
These Are the 4 Best Medicare Advantage Plans for 2020

Medicare Advantage customers themselves rate these plans highest.

This Is the Cheapest Place to Buy a Used Car
This Is the Cheapest Place to Buy a Used Car

Looking for a good deal on a set of wheels? This should be your first stop.

The 10 Most Commonly Stolen Vehicles in America
The 10 Most Commonly Stolen Vehicles in America

A new model parks atop the list of vehicles that thieves love to pilfer.

19 High-Paying Jobs You Can Get With a 2-Year Degree
19 High-Paying Jobs You Can Get With a 2-Year Degree

These jobs pay more than the typical job in the U.S. — and no bachelor’s degree is required.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

5 Keys to Making Your Car Last for 200,000 Miles
5 Keys to Making Your Car Last for 200,000 Miles

Pushing your car to 200,000 miles — and beyond — can save you piles of cash. Here’s how to get there.

26 States That Do Not Tax Social Security Income
26 States That Do Not Tax Social Security Income

These states won’t tax any of your Social Security income — and in some cases, other types of retirement income.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

10 Reasons Why You Should Actually Retire at 62
10 Reasons Why You Should Actually Retire at 62

If you can, here are several good reasons to retire earlier than we’re told to.

7 Surprising Features That Boost Your Home Value
7 Surprising Features That Boost Your Home Value

You can add value to your home without hiring a contractor to do expensive renovations.

5 Things That Make Life More Meaningful for Retirees
5 Things That Make Life More Meaningful for Retirees

Retirees agree: These are the things that give them purpose and fulfillment in their golden years.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.